The housing market impacts of human activities in public spaces : the case of the square dancing

Abstract

Square dancing is a popular public activity performed in squares and parks in Chinese cities. Although dancers benefit from such activity physically and mentally, nearby residents may suffer from noise pollution and other negative externalities. However, only a few existing studies have explored the effects of square dancing on the value of residential properties and open spaces. To fill this knowledge gap, this study utilizes the hedonic price model and spatial econometric model to investigate the external effects of square dancing in the housing market of Hangzhou, China. Results show that nearby housing price drops by 5.8 % and 13.0 % when people dance in the nearest park and square. In addition, square dancing decreases the value of parks and squares, and this mediating effect shows spatial heterogeneity (e.g., the premium of living in the segments of 0–200 m and 200 m – 1 km from parks decreases from 0.231 to 0.047 and from 0.126 to 0.045, respectively; the premium of living in the segments of 0–800 m, 800 m – 1.5 km, and 1.5–3 km from squares decreases from 0.157 to 0.060, from 0.165 to 0.022, and from 0.166 to 0.033, respectively). The results of this study indicate that square dancing has a significant negative external effect on housing price and the value of open space. This study offers implications for policy makers to achieve a harmonious society and humanized urban planning. The findings and implications of this study ensure the benefits of residents and improve the value of residential properties and open spaces. In addition, the findings can be generalized across cities or countries where square dancing and other human activities (e.g., night market) are popular.